Civeo Announces Conditional Award of Four Contracts for Coastal GasLink Pipeline Project in Canada
HOUSTON, July 05, 2018 — Civeo Corporation (“Civeo” or the “Company”) (NYSE:CVEO), one of the largest global providers of workforce accommodations, logistics and facility management services to the natural resources industry, announced today that it has been awarded contracts to supply accommodations for four locations along the Coastal GasLink pipeline project in British Colombia, Canada. The Coastal GasLink pipeline project is an approximately 670-kilometre pipeline from the Dawson Creek area to the west coast of B.C. The proposed pipeline will transport natural gas to the proposed LNG Canada facility near Kitimat. These contracts are subject to a positive final investment decision (“FID”) from the LNG Canada joint venture; the timing of the FID is expected later in 2018.
The accommodation facilities are collectively expected to reach total peak room count of over 2,000, and revenue for the full-term of the contract is expected to be approximately C$100 million over 2019-2021. Civeo will partner with a First Nation for each facility through its network of leading First Nation and community partnerships.
Bradley J. Dodson, Civeo’s President and Chief Executive Officer, stated, “We are pleased to announce these contract awards, solidifying our position as the partner of choice for workforce accommodation solutions in Canada. The strength of our First Nation relationships was critical to these awards, and we look forward to collaborating with our partners to provide best-in-class accommodations along the Coastal GasLink pipeline project. Along with our recent acquisition of Noralta Lodge, this contract is a testament to our continued growing presence across Canada.”
Civeo expects to deploy approximately C$10 million in capital, primarily in 2019, across all four facilities, which will include maintenance to existing assets, new site service equipment and a limited number of new modular assets.
Civeo Corporation is a leading provider of workforce accommodations with prominent market positions in the Canadian oil sands and the Australian natural resource regions. Civeo offers comprehensive solutions for housing hundreds or thousands of workers with its long-term and temporary accommodations and provides catering, facility management, water systems and logistics services. Civeo currently operates a total of 30 lodges and villages in operation in Canada and Australia, with an aggregate of more than 32,000 rooms. Civeo is publicly traded under the symbol CVEO on the New York Stock Exchange. For more information, please visit Civeo’s website at www.civeo.com.
Frank C. Steininger
Executive Vice President and Chief Financial Officer
FTI Consulting Inc.